Avoiding Post-Merger Corporate Downsize Restructuring: The Democratic Employee-Culture Fit Model (DeECFit)

Abstract

One major challenge in Mergers and Acquisitions is the best possible utilization of the human resources organizations offer. The judgment on employee redundancy is often highly controversial and risky. It can impact the motivation of the remaining employees, the corporate culture, and the reputation of the firm in the market. This paper addresses this challenge by introducing the Democratic Employee-Culture Fit Model (DeECFit) for Post-Merger Corporate Restructuring to avoid downsizing practices and maximize the utilization of the available human resources and intellectual capital. The model describes the relationship between the definition of the cultural values and the concentration of democratic values needed for an employee of either company to effectively join the Merger and operate under a symbiotic model by utilizing their human recourses. The democratic approach of the DeECFit Model provides the opportunity to all employers from both organizations to prove and justify their place in the Merger.